HOUSTON, July 8, 2021 /PRNewswire/ -- Group 1
Automotive, Inc. (NYSE: GPI), ("Group 1" or the
"Company"), an international, Fortune 500 automotive retailer,
today provided preliminary estimates of its earnings and unit sales
for the three months ended June 30,
2021.
Group 1 CEO Earl Hesterberg
stated, "The unprecedented supply disruption to new vehicle
production largely stemming from the microprocessor shortage has
made it very difficult for the financial markets to grasp the
impact on our business. Therefore, we are providing some
preliminary data on how we are navigating through these challenging
times – and I think it is fair to say we are navigating the
situation quite well."
Group 1 expects earnings per share on a GAAP and non-GAAP basis
for the second quarter of 2021 to range between $10.20 and $10.70
per share. This result was driven by strong vehicle margins
in the U.S., a rebound in U.S. service business, recovery of the
U.K. market, and ongoing strong cost control throughout the
company.
Group 1 expects U.S. second quarter 2021 parts and service gross
profit to have increased by approximately 10% versus the second
quarter of 2019 on a same-store basis. Comparisons versus the
second quarter of 2020 are distorted due to substantial
COVID-related business disruptions in the second quarter of last
year.
Group 1 President, U.S and Brazilian Operations, Daryl Kenningham added, "As evidenced by U.S.
new vehicle industry sales volumes in recent months, the prolonged
reduced level of vehicle production by our OEM suppliers has
hampered industry sales volumes and our new-vehicle inventory
levels by significant amounts compared with normal expectations.
However, it should be noted that industry sales volume reflects a
dramatic decrease in the fleet segment in the U.S., a market that
Group 1 does not actively compete in. Additionally, OEMs are
now producing only the fastest selling models, which improved our
inventory turn and enabled us to sell more new units in the U.S. in
the second quarter of 2021 than we did in the second quarter of
2019, which was the comparable period pre-COVID."
As shown below, Group 1 is also providing estimated second
quarter 2021 new and used retail unit volumes, along with
comparisons on a same store basis versus the second quarters of
2020 and 2019. It should be noted that both the U.K. and
Brazilian markets experienced some closures during the second
quarter of 2020 and 2021, which distorts comparisons to the second
quarter of 2019.
|
Estimated
|
Est. Same
Store
|
|
|
Estimated
|
Est. Same
Store
|
New Retail Unit
Sales
|
2Q21
|
vs
2Q20
|
vs
2Q19
|
|
Used Retail Unit
Sales
|
2Q21
|
vs
2Q20
|
vs
2Q19
|
U.S.
Segment
|
34,000
|
+55%
|
+11%
|
|
U.S.
Segment
|
34,000
|
+31%
|
+12%
|
U.K.
Segment
|
7,200
|
+90%
|
-29%
|
|
U.K.
Segment
|
10,500
|
+165%
|
+21%
|
Brazil
Segment
|
1,400
|
+98%
|
-44%
|
|
Brazil
Segment
|
500
|
+50%
|
-43%
|
Consolidated
|
42,600
|
+61%
|
-1%
|
|
Consolidated
|
45,000
|
+49%
|
+12%
|
U.S. new vehicle inventories ended the second quarter of 2021 at
approximately 5,400 units, which equates to a 16-day supply.
U.S. used vehicle inventories ended the second quarter of
2021 at approximately 12,800 units, which equates to a 29-day
supply.
Regarding the inventory outlook, CEO Earl Hesterberg commented, "We believe that we
are nearing our lowest point of new vehicle supply with
approximately 8,500 new U.S. vehicle receipts in June 2021 and a similar number expected in
July. We do not have visibility beyond that. A high
percentage of our incoming units are pre-sold and we were able to
retail approximately 10,000 units in June in the U.S. despite
inventory levels never exceeding 7,000 units at any point during
the month."
The foregoing estimated results are based on preliminary
information as of this date and are subject to change following
completion of the quarter-end review process and other developments
arising between now and the time financial results are finalized.
In addition, these preliminary unaudited results are not
comprehensive financial results for the quarter ending June 30, 2021, should not be viewed as a
substitute for complete GAAP financial statements or more
comprehensive financial information, and are not indicative of the
results for any future period. The Company expects to release
earnings for the quarter ended June 30,
2021 on July 29, 2021.
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 188 automotive dealerships, 242
franchises, and 48 collision centers in the
United States, the United
Kingdom and Brazil that offer 32 brands of
automobiles. Through its dealerships, the Company sells new and
used cars and light trucks; arranges related vehicle financing;
sells service contracts; provides automotive maintenance and repair
services; and sells vehicle parts.
Investors please visit group1corp.com, group1auto.com,
group1collision.com, acceleride.com, facebook.com/group1auto, and
twitter.com/group1auto, where Group 1 discloses additional
information about the Company, its business, and its results of
operations.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, which are statements related to future, not past, events and
are based on our current expectations and assumptions regarding our
business, the economy and other future conditions. In this context,
the forward-looking statements often include statements regarding
our strategic investments, goals, plans, projections and guidance
regarding our financial position, results of operations, business
strategy, and often contain words such as "expects," "anticipates,"
"intends," "plans," "believes," "thinks," "seeks," "should,"
"foresee," "may" or "will" and similar expressions. While
management believes that these forward-looking statements are
reasonable as and when made, there can be no assurance that future
developments affecting us will be those that we anticipate. Any
such forward-looking statements are not assurances of future
performance and involve risks and uncertainties that may cause
actual results to differ materially from those set forth in the
statements. These risks and uncertainties include, among other
things, (a) general economic and business conditions, (b) the level
of manufacturer incentives, (c) the future regulatory environment,
(d) our ability to obtain an inventory of desirable new and used
vehicles, (e) our relationship with our automobile manufacturers
and the willingness of manufacturers to approve future
acquisitions, (f) our cost of financing and the availability of
credit for consumers, (g) our ability to complete acquisitions and
dispositions and the risks associated therewith, (h) foreign
exchange controls and currency fluctuations, (i) our ability to
retain key personnel, (j) the impacts of COVID-19 on our business,
(k) the impacts of any potential global recession and (l) our
ability to maintain sufficient liquidity to operate. For additional
information regarding known material factors that could cause our
actual results to differ from our projected results, please see our
filings with the SEC, including our Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services
and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.cm
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SOURCE Group 1 Automotive, Inc.